Modeling Feedback Mechanism for E-Marketplace

Because user´s feedback is help to build trust in online transaction, we develop a function about the buyer´s bidding, and describe the risk under the feedback mechanism. Then, we analyze the double effects on the buyers and sellers´ behavior chosen. After that, we use MATLAB to design a program of Monte-Carlo sampling method to simulate the actual online business. The experimental results show that the efficient feedback mechanism will have a positive impact on the behavior of sellers and buyers. The results will help E-marketplace to implement its feedback mechanism.